Mortgage Rates (5%+)

[Ryan Beinner]

Hi BP Community,

I am looking to invest in a SFH (TurnKey) and my timeline to purchase is November/December of 2022.

With the fed increasing mortgage rates to near 5%, and assuming a .5% uptick each fed meeting until the years end (reaching potentially 7%+), is now still a good time to invest in TurnKey ?

Choosing TurnKey for lack of time and to get my feet wet in the game. But now should I wait for supply to increase and rates to lower? Or do REI pro's still outweigh the cons of high rates?

Any and all feedback is appreciated. 

[Josh Thomas]

5% seems like a great rate to me. I suppose the answer depends on if you are still comfortable with the cash flow. 

I'm finding that traditional multifamily investment loan rates have skyrocketed and are steadily increasing by the day. In December last year I picked up multiple loans in Ohio at 4.25%, whereas my rate today is 5.95%. ARM and 15 year options aren't much better than the 30 year fixed. I have a feeling it will keep going higher for the long term based on fed speak.